in any community where that industry is convinced that other factors, so important in industrial location, are considered to be favorable.

This proposed bill seems to start with the assumption that what is preventing these so-called "depressed areas"-and this designation is purely relative, in my opinion-in attracting new industry, is, first of all, that someone lacks the money to expend to start a business.

This measure attempts to cure the situation by providing this money out of the Federal Treasury-it provides $50 million as an initial appropriation, and no one knows how much higher it can or will go-to be parceled out by the Federal Government, in the form of outright grants or loans with hope of ultimate repayment.

This legislation appears to treat the symptoms and not the disease. Evidence is lacking that opportunities for profitable employment of capital, anywhere in the United States, is going begging because investors have spurned opportunities to put these funds to work in assisting any company to establish a new manufacturing, wholesaling, or retailing facility which holds promise of a profitable operation.

It is common knowledge among the industrial development faternity that, to a large degree, decisions on where to start or expand a business are dictated by factors over which the community has little control, be it "depressed" or underprivileged as set forth and so designated in this bill.

In this category come such fundamental factors as accessibility to raw materials and markets, availability of power and water resources, transportation, and transportation costs, equitable taxes, good local government, adequate sewerage systems, schools, streets and highways, availability of a good, suitable, and useable labor supply-all of which add up to what is accepted as the ingredients of "a favorable business climate."

This proposed measure is most disturbing in that it proposes to duplicate with public funds functions which already are being carried on with private inititaive and private moneys. Industrial agents of the railroads, utilities, industrial realtors, State, and local chambers and area development organizations have and are spending large sums of money and great amounts of time in their respective areas to point out to leaders of these very towns this bill portends to assist (and in some cases even larger cities) that in order to attract an industry, the community must first have this favorable business climate we have mentioned above, and, in addition its residents must be conditioned and willing to accept the responsibilities that go along with establishment of a new industry in their area. Another factor of industrial development work, generally overlooked or ignored in the zeal of a community to attract a new enterprise, is that a new industry must fit into the general economic and social pattern of that community. This factor has been and is being stressed continually to local community leaders by recognized development agencies and their representatives.

In industrial location there are certain fundamental facts of life and economic principles that must be taken into account. Any attempt to ignore these fundamental precepts or any attempt to force industry to locate in unnatural surroundings either through special inducements of one kind or another by the Federal, State, or local government, or through outright subsidy on the part of the Federal Government being proposed in this measure under considerationignores these basic laws of economics. The result will be either financial failure of the industry or a continuation of the subsidy to keep the industry alive and operating.

In our considered opinion, this type of legislation under consideration is dangerous in that the Federal Government is getting out of its field and into competition with private enterprise when it attempts to further schemes or direct attempts to promote industrial growth of selected areas or towns. This leads to discrimination between areas, communities, and even States, penalizing one community or area which has had enough initiative and determination to solve its own problems in favor of another which perennially looks to and depends upon a paternalistic Federal Government for the solution of problems which should be solved locally.

The will to live and to grow and prosper is still paramount among people and communities. In my opinion there is, at the present time, sufficient public and private aid and assistance available to communities in their desire and effort to attract industry providing there exists such a local will, and provided that the community has the qualifications, and is ready to receive and assimilate such new industry.

Superb examples of community initiative and of local solution, actually pulling the community up by its own bootstraps, can be found in the recent successes which have been reported by such "distressed" areas as the Scrantons, Toledos, Woonsockets, Wilkes-Barres and Lawrences, and hundreds of others that have not been fortunate enough to be so deservedly publicized.

This measure will bring about a condition in which industry in one area will be taxed to support its competition in another area, a case which could lead to the old fable of "killing the goose that lays the golden egg."

When our Nation was new, we were predominately agricultural in nature. We depended largely upon the products of the farms for our necessities. As we grew, and demands or markets increased, such products as were not imported were made in the kitchens of the farmers and householders, or in small shops. With the growth of population, demands and markets grew and industries expanded in size and numbers to produce these articles. Industry in turn, through research and private initiative, created new products and new methods for their production, all readily accepted by the public. This growth required new plants, new facilities, in fact this expansion has continued to a point which today has made us the greatest productive Nation on earth.

This growth still is continuing and should be allowed to continue without these strange efforts to distort the natural laws of economics.

We have every reason to believe that, with our expanding population and the resultant expanding economy, industry will continue to grow and place new manufacturing or distributing operations in the areas economically entitled to receive such operations.

Public support continues to grow for the Government's policy of unfettering business, allowing it to follow normal channels and operate with reduced Government competition and interference. This measure runs counter to that trend. Even though it calls for only a small budget for its initial operation, once "the foot gets in the door," it is inevitable that funds for this operation will be expanded. You men who serve in the Congress know this better than anyone else. In our considered opinion, any such program and resultant appropriation by the Federal Government is unnecessary and unwarranted. It should be denied, especially since this activity is being done soundly by private capital where local conditions admit such development. This unfettered, private system is the very core of our present thrilling growth and expansion.

We respectfully recommend that this committee in its august deliberation on this bill, which affects the very fundamental precepts upon which our great Nation was founded, recognize the fact that the problems of industrial development should be considered as a local problem and not as a national problem, and that the entrance of the Federal Government into this field be denied.

STATEMENT OF ROSICLARE COMMUNITY DEVELOPMENT ASSOCIATION, ROSICLARE, ILL. (ROY E. HENSLEY, PRESIDENT; J. BLECHEISEN, CHAIRMAN, INDUSTRY COMMITTEE) Hardin County, Ill., is an area of predominantly low-income families, is an economically distressed area, with impaired standards of living and well-being among its citizens. However, it need not continue to be a "depressed area" as it has a full measure of physical and human resources which, if properly attended upon, could be reasonably developed to make our area economically sound, with a typical American high standard of living.

Hardin County, wherein Rosiclare is located, is considered as an economic "no man's land." Over the years its economy has been steadily declining and it may fairly be said to be a chronic depressed area as its difficulties are probably as old as 20 years.

Hardin County's economic, principal, income-producing activities may be classified as follows:

1. Fluorspar mining-this is by far the major economic activity.

2. Stone quarrying--somewhat meager.

3. Farm and forest products-grossly inadequate.

There are no manufacturing or industrial activities of any kind, nor any commercial recreational enterprises.

Our county is part of a larger area of southern Illinois which appears to be suffering from the same kind of economic disability; generally, these counties are Jackson, Williamson, Saline, Gallatin, Union, Pope, Johnson, Alexander, Pulaski, and Massac. These counties, including Hardin, have depended for

their economic mainstay on agriculture, coal, and fluorspar. With the declining importance of coal in the field of power and fuel by reason of the increased usage and competition of oil and gas, aggravated by the exhaustion of local coal deposits, and with the percentage of agricultural lands becoming less and less suitable for income-producing usages by reason of erosion and exhaustion of all necessary soil nutrients, and with the sharp contraction of domestic fluorspar opportunities available to local fluorspar producers in America's consuming markets by reason of the increased proportion of America's fluorsparconsuming market captured by the low-priced, cheaply produced, foreign imports of fluorspar-with the occurrence of all of these unfortunate and destructive economic developments, this whole southern area of Illinois has come upon bad, very bad, economic times.

Hardin County is in southeastern Illinois on the Ohio River, and geographically comprises approximately 180 square miles; it is situated as a peninsula on the southeastern part of Illinois and is isolated entirely from the point of view of any through or over-the-road traffic. Our county has direct access to Kentucky, across the Ohio River, by rather primitive ferry service at Elizabethtown and Cave-in-Rock; the nearest bridge access is at Paducah, Ky., 50 miles distant The nearest important cities are Chicago to the north, about 400 miles; St. Louis, Mo., to the northwest, a distance of about 175 miles; and Evansville, Ind., to the northeast, about 100 miles away.

We have in Hardin County three municipalities-Rosiclare, with a population of 2,100, and Elizabethtown and Cave-in-Rock, each with a population of 500; the remainder of the area is rural, with a population of 4,400; total county population 7,500. We have approximately 2.200 families in the county.

An enumeration of some of the indicia by which one must conclude that Hardin County is an economically distressed area with impaired standards of living follows:

1. In the Rosiclare-Elizabethtown area, 22 percent of the dwellings have no running water; in the Cave-in-Rock area, this percentage is almost 50 percent.

2. In the Rosiclare-Elizabethtown area, nearly 50 percent of the dwellings have no inside toilets; in the Cave-in-Rock area, this percentage is nearly 75 percent. 3. In the Rosiclare-Elizabethtown area, nearly 50 percent of the dwellings have neither bath nor shower; in the Cave-in-Rock area, this percentage is nearly 70 percent.

4. Hardin County's real and personal property assessed valuations for local tax purposes declined for $13,400,000 in 1953 to $12,400,000 in 1955-a decline in assessed valuations of $1 million, with a consequential decline in the scope of local governmental services which the local tax units could afford to engage in, affecting schools, among other municipal activities.

5. Retail sales in Hardin County declined from $3,400,000 in 1952 to $2.675,000 in 1954 (the latest year for which figures are available), down by $725,000, a decline of 20 percent.

6. In 1952, 2,550 railroad cars of freight went out of Hardin County; in 1954 only 1,780 cars went out, a decline of 30 percent.

7. As to Ohio River barge shipments-from barge points in Hardin County there were shipped approximately 50,000 tons in 1952, while in 1954 the amount was 5,500 tons, a decline of 44,500 tons.

8. In the Rosiclare High School area (Hardin County has 2 high-school areas), on the average ony 30 percent of the high-school graduates stayed in the district; the remainder left the area. Coupled with the exodus of our school youth is the continuing and increasing outmigration of our work force-a trend which is robbing our community of the rich vitals of human resources.

9. In June of 1953 approximately 1,080 were employed in fluorspar mines in Hardin County; as of the present time, this figure is estimated to be approximately 700, a decline of 30 percent. (These figures are as to mines whose employees are covered by the Illinois unemployment compensation law.) The decline of employment in the smaller mines (non-unemployment-compensation mines) is believed to be considerably greater.

10. Fluorspar sales out of Hardin County in 1952 aggregated $9,500,000, while in 1954 they aggregated $6 million, down $3,500,000, or a decline of approximately 37 percent.

11. Farm product annual sales of crops, livestock, and dairy, which totaled around $450,000 in 1954 from fifty-thousand-odd acres of farmlands in Hardin County, means a gross annual yield of $9 per acre, before expenses-a patheti

figure; the annual yield of $2,200 in 1954 on forest products from about 45,000 acres of forest lands in Hardin County means a gross annual receipt, before expenses, of 5 cents per acre-another pathetic result. Certainly Hardin County cannot qualify as an income-producing agricultural land area.

12. The total public-assistance program of Illinois in Hardin County (comprised of general assistance, old-age assistance, aid for dependent children, blind assistance, and disability assistance) averaged, in September 1955, 90 persons per 1,000 population, while the downstate Illinois average was 30 persons per 1,000 population; thus Hardin County has a public-assistance ratio (in September 1955) of 3 times that of the Illinois downstate average.

The more general findings and conclusions of Federal Government agencies are: 1. As an agricultural area, Hardin County is classified by the United States Department of Agriculture in its April 1955 study, Development of Agriculture's Human Resources, as being an area in the last fifth and lowest income and levelof-living group.

2. Hardin County is classified by the United States Department of Labor as a labor surplus area-IV-B, and has been so classified since about November 1954. A "IV-B" area is an area having an unemployment ratio of 12 percent or more of the available work force.

It becomes apparent from the foregoing that Hardin County is one of the "maladjusted" economic areas in our great land of plenty and prosperity; such "maladjustment" is old and persistent in the area with evidences of nasty and malignant growth in the future unless steps are taken forthwith to remedy the situation. We are, unfortunately, one of the areas which has failed to participate in any measurable way in the dynamic growing prosperity of our fair land over the last quarter century.

Having described the darker picture of our county, I would like to turn to the brighter side and that is, the spirit, enterprise, and willingness of our local people to join together in an effort to help themselves. Firstly, as to our efforts at self-help: In September 1954, we here organized a community development association under the aegis of the Southern Illinois University, Area Development Department. The distinguished mayor of Rosiclare, Mr. Otis Lamar, was our association's first president and to a large extent he spearheaded the first movement of organization. Ours is not a "brassy" chamber of commerce effort; instead, it is a volunteer effort of our local citizens drawn from all walks of life, from every rung of our economic ladder, from every geographical corner of our community, and from each ambit of the intellectual and social horizons among us. We gathered together via this association because we were consciously and painfully aware of our declining economy and the impact which it has had upon our people and their living conditions, and we undertook (a) to study, analyze, and delineate the things and assets we have, the people we are, and the range and scope of our local economy, and (b) to demonstrate, if we could, that it is possible for us to improve our economic condition, and to give us here in Hardin County a better and richer economy, with full employment for those able and willing to work, and improved living conditions for all of us. After a large, general "town hall" type of public meeting held on September 9, 1954, we set up 11 study committees.

Reports were prepared and worked on by over 100 working committeemen, which reports totaled over 300 pages of about 100,000 words. These reports covered every phase of our community, and we are proud of the content of these reports and the great reservoir of pertinent information embraced in them. We had 15 public meetings between September 1954, and May 1955, at which meetings these reports were discussed and commented upon by our local citizens in attendance. Since the issuance of these reports, "action" projects have been embarked upon to carry out the suggestions made in the various reports. Secondly, as to our resources: Hardin County's basic resources are:

1. Fluorspar ore deposits and milling capacity (all grades) in Hardin County are sufficient to produce annually 250,000 tons of commercial fluorspar. This is an extremely valuable resource, as fluorspar, according to the latest forecast, stands on the brink of a most hopeful expansion in usage. In 1955 there was an American consumption of 550,000 tons of fluorspar, all grades, in the following end uses, and paralleling those uses, we show the projected 1960 usage totaling 835,000 tons; there is thus a projected increase of approximately 50 percent

over current uses, with the largest percentage projected increase believed to be in the atomic energy field:

It only remains for Hardin County enterprise and ingenuity to try to work out some fair basis upon which it could participate more generously in the American consuming market against the destructive competition of low priced, cheaply produced foreign fluorspar.

2. Farmlands for pasture and/or crops and/or dairy products, totaling 70,000 acres in Hardin County, have the lowest possible present economic exploitation, largely arising from erosion and failure to do the things which are necessary to bring land back to profitable economic cultivation. In the area of exploitation of our farmlands, Hardin County definitely needs the assistance of outside experts. 3. Forest lands in Hardin County aggregate 45,000 acres, with about one-half owned by the United States Forest Service. Our forest lands fall into the category of a low-income producing asset. There is no organized tree-planting program in the area except that of the Forest Service, as to its own lands. Perhaps the answer lies in the acquisition by the United States Forest Service of all, or substantially all, of the forest lands in Hardin County. It may be noted here that the local United States Forest Service is doing an excellent job in Hardin County in timber management.

4. We have river transportation facilities for river barge loading service. Barge service, of a kind, is available in Cave-in-Rock and Rosiclare. The facilities at Rosiclare can be readily improved and developed for large-scale barge service, and in the past these river facilities served as an important outlet for shipments of fluorspar out of Hardin County. With the projected construction of the new St. Lawrence Seaway, it is possible to consider the creation of barge service from the Ohio River to Europe by the single expedient of building an inland waterway from the Pittsburgh area to Lake Erie-such a connecting inland waterway would give us continuous water passage between Hardin County and Europe. The possibility of a waterway from the Pittsburgh area to Lake Erie has been studied by the United States Corps of Engineers, and a report thereon has been made to Congress. It lies in the interest of all Ohio Valley citizens to work for the adoption of this inland waterway from the Pittsburgh area to Lake Erie.

5. Hardin County has ample water resources for industrial use, both Ohio River and fluorspar mine water. It might be noted that our local fluorspar mines in times past, have pumped up and away at the rate of 15,000 gallons per minutethis water alone would be of great value to many industrial enterprises, such as pulp mills.

6. Natural gas is available to Hardin County from the Eldorado area where the cross country natural gas lines of Texas Eastern Gas Transmission Co. lay. This company is now working under an arrangement whereby the Saline County natural gas is gathered and pumped into its cross country line at Eldorado, and Texas Eastern Gas Transmission has advised that it stands ready to consider a proposal to build natural gas lines into Hardin County for industrial and house usage.

7. Hardin County does not have adequate electrical power facilities for large industrial uses. Conversations and negotiations, however, are now going on among a group of Illinois State REA cooperatives and some of the private utility companies for the building of a generating plant somewhere in southern Illinois, south of a line drawn from Carbondale to Shawneetown, which line is approximately 30 miles due north of Rosiclare.

8. Our human resources are our best asset. Every study of southern Illinois made by specialists in the field of economic surveys, has uniformly found that our people represent our best asset, but that it was an asset which has been wasting in a shameful way over recent years. There has been a steady and increased out-migration of our youth because of the failure to provide economic opportuni